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richard the Realtor

03/19/10 6:15 PM

#59703 RE: AllyAustin #59629

Stock dilution
From Wikipedia, the free encyclopedia


A share dilution happens when a company, typically traded in unregulated markets such as the OTC Bulletin Board and the Pink Sheets, repeatedly issues a massive amount of shares into the market by no justified reason, considerably devaluing share prices, causing huge losses to shareholders. Then, after share prices are at or near the minimum price a stock can trade and the share float has increased.